CLT FGTS 40 Percent Severance Fine Calculator

FGTS termination penalty — rule and example

When an employee is fired in a dismissal without cause, the employer owes a 40% penalty on the entire FGTS balance built up during the contract. That isn't limited to what the current employer deposited; any earlier balance that was transferred in counts too. The base figure is the historical sum of the 8% monthly deposits plus monetary correction, which you read straight off the FGTS extract on the termination date.

Example: say an employee has R$ 12,000 of accumulated FGTS and is dismissed without cause. The penalty works out to 12,000 × 0.40 = R$ 4,800, which goes straight into the employee's FGTS account and can be withdrawn along with the full balance. One thing that often confuses people: Law 13,932/2019 did away with the extra 10% social contribution that used to go to the government. It has been gone since 2020, so the employer no longer pays it.

Brazilian context

The number changes with the type of exit. Under a mutual-agreement termination (Law 13,467/2017) the penalty drops to 20%, and the employee can withdraw 80% of FGTS but gives up unemployment insurance. A just cause firing (art. 482 CLT) means zero penalty and no withdrawal at all. An indirect dismissal pays the full 40%, just like a dismissal without cause. Whichever applies, the penalty is tax-exempt (no INSS, no IRRF), which makes it worth factoring into your financial plans after a layoff.

FAQ

Does the 40% apply to my entire career balance? Yes. It covers deposits from every previous employer that were never withdrawn, on top of whatever the current contract added.

What about the 10% additional contribution? It has been gone since 1 January 2020 (Law 13,932/2019). Terminations dated before then still owed that 10% to the government on top of the 40%.

Is the penalty deposited or paid in cash? It goes into the FGTS-linked account at Caixa, and is then released together with the full balance through the FGTS app or at a branch.